Since 2010, the central securities depository (SCD) of the Ugandan stock market has been engaged in the digitization of its operations. It has just taken a new step thanks to its collaboration with MTN MoMo.
Mobile operator MTN Uganda has further democratized Ugandans’ access to the local stock market. It is now possible, from its Mobile Money service, to buy and sell shares of companies and debt securities listed on the Uganda Securities Exchange (USE); to transfer money directly to brokers. In partnership with USE’s central securities depository (SCD), MTN Uganda officially launched the new service on Tuesday, September 14 in Kampala.
Stephen Mutana, Chairman and CEO of MTN Mobile Money Limited, the financial arm of MTN Uganda, said “ as a financial service provider offering services that have revolutionized digital finance, for us this is about a great opportunity to digitize this crucial function of equity investing by simplifying it for our clients. Now that it’s easier, we believe more people will be able to open SCD accounts and participate in the stock market as a long-term investment alternative ”.
Access for MTN MoMo users to the Ugandan stock market is one more step for SCD in its ambition to create an inclusive financial market and improve the investor experience on the Uganda Securities Exchange. It is since 2010 that the SCD began to digitize its operations to make them more accessible to the majority of Ugandans.
In collaboration with the main stakeholders of the financial market, the paper certificates were first converted to an electronic format. Then in 2015, various market access solutions were developed, in particular the Easy Portal web platform, a self-service channel for opening an SCD account, launched last year.
With MTN MoMo, the SCD which currently has 37,000 investors, including 4,000 institutional and 33,000 individuals, according to Paul Bwiso, the chairman and CEO of the Uganda Securities Exchange, wants to increase the number of investor account openings from 1 500 to 3,500 per year. More and more Ugandans will thus be able to take part in government bonds listed on the stock exchange which currently amount to 18.16 trillion Ugandan shillings (5.1 billion USD) according to the Uganda Securities Exchange in its bulletin of the second. quarter 2021.
For MTN Uganda, this new service is the opportunity to generate new revenues on its mobile financial service, whose subscriptions grew by 14.4% in 2020. For a total of 8.5 million users according to the 2020 financial results of the company.